The Reserve Bank of India on Tuesday issued revised guidelines to streamline the matters placed before bank boards, aiming to improve the efficient use of board time and encourage more focused discussions on strategy and risk oversight.
The updated directions also require boards to clearly identify the matters that need their approval and to regularly review the powers delegated to management. The new framework will come into effect from October 1, 2026.
As per the revised norms, boards will oversee areas such as risk management, policy and strategic decisions, exposure to related parties, and adherence to corporate governance standards, among other duties. “The chairperson of the board will be primarily responsible for setting the meeting agenda,” the RBI said.
The regulator added that boards will continue to hold ultimate responsibility for the bank’s overall business strategy, financial stability, governance structure, key appointments, risk management, and compliance with regulations.
Additionally, boards must ensure they receive adequate and timely information from management to perform their roles effectively. They should also define the type and frequency of information required. “Boards may also seek external reports if necessary,” the RBI stated.
business-standard